CrossUSA expanding to Iron Range

EVELETH The owners of CrossUSA say some of their people are already in the area, settling in and seeking housing. via Mesabi Daily News

[Pete]

Wow! CrossUSA appears to be chasing goverment funding where ever they can get it! First they abandon their commitment to Madison MN, then Watford City ND. Both towns that invested money in their opening offices there and at one time did have CrossUSA employees working there. Now they are going to Eveleth! Did these people even check out the history this company has of getting communities to invest in their business then leaving them standing their high and dry? Good luck! Who ever approved this should be fired!!

[WadenaWatcher]

I have commercial reasons for traveling in Northern Minnesota, where I have become friendly with people at local bars. I have met a number of programmers or former programmers who now reside in rural Minnesota, CrossUSA(CUSA) is a frequent topic.

There is an incestuous relationship between management of CUSA, Rep. Oberstar, and certain landlords. Several programers have been told that they could get leases in Federal subsidize housing, despite their pitifully low salary being above the income maximum, CUSA reportly offers a fake salary letter for the landlord, who by odd chance maybe in a business relationship with one of CrossUSA's executives.

CrossUSA hires programmers at low wages to be pimped out to clients with systems that ought to rewritten in Java , Perl, or .Net for the sake of ITIL. Rumor has it that the buying clients are provided incentatives to stay with CUSA due to some Federal money for rural development.

CUSA has a high turnover -- programers use to being in areas where job hoping can be a long lunch are isolated by distance, poor phones, and internet.

Investigations at local, state, and federal levels are in order, but Oberstar powerful and this is an election year.

[Pete]

Much of what you say is correct. One of the executives has money invested in apartments in Sebeka. It seems that since William Wolff left CrossUSA ethics have gone out the window. Promises are made to attract people to these jobs but once people get there things change rapidly. It is unfortunate what they do to these small towns.

[Richard]

Consulting is a tough business, especially marketing for work in more rural areas where employers are more likely to hire FT people for stability (and cost).

You two seem to have exposure to this market in the outstate areas. What's your opinion on the viability of this business model?